Sometimes, a business owner will buy a commercial property for their business to operate out of. However, purchasing a property is not the only option a business owner has for housing their business. Another option is to lease space for their business.
There are a variety of things that could draw a business owner to leasing rather than buying when it comes to commercial space.
One are cash concerns. A business owner may not have enough money to buy a property or may not want their business to experience the big dent in cash flow buying a property can have. Leasing a commercial property can have much lower initial upfront costs, which can be attractive when a business is facing cash flow struggles.
There are other things that could make buying a property not a workable option for a business owner, such as credit issues or them not finding any properties available for sale that are the type of property they want and are in the area they want to their business to be in.
Not wanting to incur major maintenance costs, wanting more flexibility in the future regarding housing their business and not wanting to be exposed to risks related to falling property values are some of the other things that could lead to a business owner wanting to lease rather than buy when it comes to commercial space for their business.
So, businesses that decide to go the lease route can vary considerably in what their goals and hopes are regarding the lease. Now, what implications leasing, rather than buying, a property has for a business and whether leasing will be able to achieve the property-related goals a business owner wants it to heavily depends on the terms of the lease. Lease agreement terms cover a range of important issues and can vary quite a bit from one commercial lease to another.
This is why lease negotiations are such a critical time for business owners when looking to lease a property to house their business in. Experienced attorneys can help business owners looking to lease with the lease negotiation process and with their efforts to get a lease agreement that will help them achieve their goals regarding housing their business and that is consistent with their larger goals for their business.
Source: FindLaw, "Factors to Consider: Lease or Purchase of a Facility," Accessed April 22, 2016